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Mimecast spurns Proofpoint’s higher take-private bid over antitrust concerns

Jan 13 (Reuters) – Mimecast Ltd (MIME.O), the e-mail safety supplier that introduced a deal to go non-public final month, has rejected a higher supply from Thoma Bravo-backed Proofpoint because of antitrust dangers, in response to regulatory filings and sources aware of the scenario.

Proofpoint provided $92.50 money per share on Dec. 31, weeks after non-public fairness agency Permira signed a $5.8 billion deal to purchase Mimecast with a 30-day go-shop interval throughout which Mimecast can speak with different events, mentioned the folks, who requested anonymity to debate non-public issues.

While the supply is 16% higher than Permira’s bid of $80 per share, Mimecast rejected Proofpoint’s request to conduct due diligence, citing antitrust dangers of merging two main e mail safety distributors, the folks mentioned.

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Mimecast’s particular committee reviewed the supply with authorized counsels and concluded a mix of two opponents may management over 50% of the e-mail safety market. They believed such deal would probably lead to a prolonged overview by antitrust regulators, and few treatments resembling divestitures can be found, the folks mentioned.

After a number of discussions, Mimecraft didn’t really feel its concerns have been adequately addressed by Proofpoint, which had indicated it may increase its supply additional pending due diligence.

“After considering all the alternatives available to Mimecast, the Board of Directors determined that the Permira transaction is in the best interests of shareholders and the Company,” a spokesperson for Mimecast mentioned in an announcement.

“It maximizes value, delivering a significant cash premium with a clear path to close.”

Proofpoint declined to remark. Thoma Bravo, a non-public fairness agency which took Proofpoint non-public in a $12.3 billion deal final April, didn’t reply to a request for remark.

The Permira deal is predicted to shut within the first half of 2022, topic to shareholder approval.

Mimecast shares rose 1.43% to $80.32.

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Reporting by Krystal Hu in New York; Editing by Richard Chang

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